Onion Global (NYSE: OG) has been one of the worst tech IPOs of 2021. The Chinese e-commerce company went public at $7.25 per share in early May, closed at $7 on the first day, and is now only worth about $3.80.
Investors' turn from growth to value stocks amid inflation fears and a focus on reopening plays this year, regulatory headwinds for Chinese stocks in both China and the U.S., and the previous failures of other small Chinese e-commerce companies all cast a dark cloud over Onion's IPO. A disappointing earnings report earlier this month exacerbated that pressure.
But at its current market cap of a meager $340 million, Onion trades at less than one times last year's sales. Are investors too skeptical about Onion's prospects, or should they continue to avoid this busted IPO?
For further details see:
Should You Buy Onion Global After Its Busted IPO?